Fitch Ratings has upgraded Pampa Energia Long-Term Foreign Currency and Local Currency Issuer Default Ratings (IDR) to B- from CCC. Fitch has also upgraded Pampa’s senior unsecured notes to B-/RR4 from CCC/RR4. The rating agency said that “The rating upgrades reflects Pampa’s resiliency during a challenging macroeconomic and uncertain regulatory environment since 2018 coupled with it de-risking its consolidated business by selling its majority stake in electricity distribution company, Edenor.” Pampa has de-levered from 2.3x in 2018 to 2.0x expected in 2021 and strengthened overall liquidity, despite strict capital controls. Fitch estimates Pampa’s net debt to EBITDA to be less than 1.5x by 2023, since there are no material debt maturities during this time. Consistent with a higher rating category, Fitch forecasts that total debt to EBITDA in USD terms will be 1.9x in 2021, compared to 2.2x in 2020. Total debt to EBITDA is estimated to average 2.0x from 2022-2024 and net debt to EBITDA is expected to be 1.2x in 2021 and in the range of 1.0x-1.5x from 2021-2024. The next major repayment due for Pampa is of its $450mn 7.375% 2023s is expected to be able to refinanced despite the capital controls rules.
Pampa´s dollar bonds traded slightly higher with its 9.125% 2029 at 91.338, yielding 10.79%.
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